Nutreco lands Cargill subsidiary
Nutreco announced on Wednesday that it is purchasing Cargill’s animal nutrition division in Spain and Portugal for EUR 40 million (USD 56.4 million).
The acquisition includes Cargill’s 12 compound feed production facilities, with an annual capacity of around 700,000 metric tons, annual sales of approximately EUR 240 (USD 338.6 million) and 450 employees. Netherlands-based Nutreco already operates an animal nutrition division on the Iberian Peninsula called Nanta.
The deal is subject to the approval of European Commission anti-trust authorities.
“This acquisition will strengthen Nanta with a team of professionals with significant know-how of the business,” said Francisco Irazusta, managing director of Nanta. “Together with the commitment and knowledge of our people, the talent of this new team will generate important synergies and will enhance the level of the industry in terms of quality, innovation and food safety for the benefit of our existing and new customers.”
“Cargill has been in animal nutrition in Spain and Portugal for many years, but now we have decided to reassess our portfolio,” added Joe Stone, president of Cargill’s global animal nutrition business. “We are a longstanding provider of raw materials to Nutreco for their animal feed production and will continue to supply them from our other operations in Spain. The sale of the business to Nutreco represents an opportunity to better position it for future success. We are confident that we are placing these operations in capable hands.”